Insurance firm can’t scrap claim for over-crowding

Nashik: The Nashik district consumer disputes redressal forum has rejected an insurance company’s claim that it declined the insurance to a motorist after his car met with an accident due to tyre burst on the basis that there were eight people in the car with capacity of five seating passengers.

‘The insurance company has the right to reject the claim on the grounds of violation of terms and conditions. But in the said case, there is no evidence to show that the violation was the cause of accident,’ the three –member forum headed by Milind Sonawane, the president of the forum, observed.

The forum further pointed out that the complainant never hid the fact that there were eight people in his car at the time of the accident which occurred due to tyre burst. But the insurance company wrongly turned down the request of settlement. This clearly marks the deficiency in service by the insurance company,’ the forum said.

The car owned by Santosh Bhalerao, Tiradshet, Trimbakeshwar, met with an accident on November 28, 2016, in Buldhana district. Five adults and three minors were travelling in the car at the time of the accident. The damage to the car was valued at Rs 5.73 lakh, while the value of the car as per the insurance policy was Rs 4.13 lakh. The company, however, rejected the claim on February 27, 2017 stating that the owner of the vehicle had violated the terms and conditions of the insurance policy.

The owner then registered a complaint with the forum seeking justice on November 27, 2018. Replying to the notice issued by the forum, the insurance company stated that the capacity of the car was to carry five people, but there were eight people in the vehicle. The forum, referring to a Supreme Court ruling, pointed out that only if the cause of the accident was a violation of the terms and conditions, could there be a chance of the insurance company rejecting the claim. It, therefore, ordered the insurance company to settle the claim.

The claim as reported by the surveyor was of Rs 1.80 lakh and since the insurance companies settle only 75% of the same, the company should clear Rs 1.35 lakh along with Rs 10,000 for physical and mental harassment and Rs 5,000 for costs incurred.

Source: The Times of India